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The Original HRA Program
Our original CDH program highlights the Health Reimbursement Account. It offers
members the opportunity to spend employer-provided dollars as if they were
their own. Employers gain a tool for engaging their employees as healthcare
consumers, while employees gain greater control over their spending decisions.
Plan Components
Health Reimbursement Account
Offered on a pre-tax basis, the employer funds
this account, which we call a Personal Care Account (PCA). When paying for
medical and pharmacy services outside the scope of preventive care (see below),
employees access this account first. Benefit dollars remaining at year-end
roll over and may be used to cover future medical costs, providing an incentive
to save PCA dollars.
Member Responsibility
If the PCA is exhausted, members may
incur some out-of-pocket cost, which we call Member Responsibility.
A PCA rollover can offsets this cost, providing added incentive
to save PCA dollars.
Health Coverage
Once members satisfy their Member Responsibility, Health Coverage takes effect.
Typically, there is cost-sharing between the plan and member during Health
Coverage in the form of coinsurance, up to an annual out-of-pocket maximum.
Preventive Care
Preventive care services typically are covered 100% in-network
as a component of Health Coverage. These expenses are
not deducted from a member’s
Personal Care Account.
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